Welc lcom ome e to to the the launch of Electro troni nics - - PowerPoint PPT Presentation

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Welc lcom ome e to to the the launch of Electro troni nics - - PowerPoint PPT Presentation

Jan 08, 2023 370 likes •557 views

Welc lcom ome e to to the the launch of Electro troni nics Manufa facturin turing g Schemes mes PLI, SPECS S & EMC2.0 .0 02 02 June 2020; 12:00 0 noon Electronics Industry in India: A Snapshot CAGR: Production - 25% |

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Welc lcom

  • me

e

to to the the launch of Electro troni nics Manufa facturin turing g Schemes mes PLI, SPECS S & EMC2.0 .0

02 02 June 2020; 12:00 0 noon

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CAGR: Production - 25% | Imports - 11% | Exports - 10%

  • Government policies and initiatives led to significant

growth in electronics manufacturing

  • India’s share in global electronics manufacturing grew

from 1.3% (2012) to 3.0% (2018)

  • Rapid growth in exports lately: 38% Y-o-Y in 2018-19

Electronics Industry in India: A Snapshot

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  • 1. India to be Global Hub for Mobile & Components Manufacturing and Exports
  • 2. Attract Global Lead Firms along with Supply Chain to India
  • 3. “Make in India for the World” : Mobile Phones to be largest exported item

GDP TAX JOBS

National Policy on Electronics 2019

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Domestic Value Addition: 15-20% Domestic Value Addition: 12-15% Mobile Handsets (Units in million) LCD/LED TVs (Units in million) LED Products (in USD billion)

Emerging Verticals

Auto Electronics Medical Electronics Industrial Electronics Strategic Electronics Telecom Products

  • 0.20

0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2014-15 2015-16 2016-17 2017-18 2018-19 0.33 0.78 1.09 1.48 2.00

Electronics- Growth Drivers

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India has emerged as the second largest manufacturer of mobile handsets in the world 2 >200 60 million 290 million $3 billion

Mobile manufacturing units Number of Mobile handsets produced* Value of mobile handsets produced*

2014 2019

*Data refers to the financial year

$30 billion

Growth in Mobile Manufacturing

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Production Linked Incentive Scheme (PLI) Large Scale Mobile Manufacturing Scheme for Promotion of Manufacturing of Components and Semiconductors (SPECS) Domestic Electronics Supply Chain of Components Electronics Manufacturing Cluster Scheme (EMC 2.0) Infrastructure and Common Facilities

Production

INR 8.0 Lakh Cr (USD 106 Bn)

Total incentives of up to INR 50,000 Crore (~ $6.7 Bn)

New Schemes for Electronics Manufacturing

Exports Employment 5 Year Outcomes INR 5.8 Lakh Cr (USD 77 Bn) 10 Lakh

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4% - 6% Production Linked Incentive for a period of 5 years Incentive Target Segments Mobile Phones and Electronic Components Outlay ~INR 40,995 Cr ($5.5 Billion)

  • Minimum Thresholds of Investment and Production per Company for eligibility
  • Ceiling on Annual and Total Incentive per Company
  • Incentives applicable from 01.08.2020

Production Linked Incentive (PLI)

5 Years Base Year: FY 2019-20 Tenure

For the Gazette Notification check https://meity.gov.in/esdm/PLI

Initial Phase of Applications upto 31.07.2020 Application Date

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PLI Portal: https://pli.ifciltd.com

For more information write to: pli@ifciltd.com

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PLI Portal: https://pli.ifciltd.com

For more information write to: pli@ifciltd.com

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25% Incentive on Capital Expenditure, on reimbursement basis Incentive Target Segments Active & Passive Components, Semiconductors, ATMP, Specialized Sub Assemblies Outlay ~INR 3,285 Cr ($440 Million)

Scheme for Promotion of Electronic Components and Semiconductors (SPECS)

Tenure 3 Years for Filing Applications; 5 Years for Investment Plant, Machinery, Equipment, R&D, Utilities, ToT Minimum Investment Threshold INR 5 Cr (USD 670K) to INR 1,000 Cr (USD 130M) Eligible Capex

For the Gazette Notification check https://meity.gov.in/esdm/SPECS

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SPECS Portal: https://specs.ifciltd.com

For more information write to: specs@ifciltd.com

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SPECS Portal: https://specs.ifciltd.com

For more information write to: specs@ifciltd.com

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50 % of Project Cost Ceiling: INR 70 Cr for every 100 acres EMC Project Common Facility Centre (CFC) 75% of Project Cost Ceiling: INR 75 Cr Outlay ~INR 3,762 Cr ($500 Million)

Modified Electronics Manufacturing Cluster Scheme 2.0 (EMC 2.0)

  • Large Manufacturing Clusters (Min land area 200+ acres, 100 acres for NE & Hill States)
  • Anchor Units (Commitment: 20% Land Area, INR 300 Cr+ Investment)
  • Plug & Play Infrastructure, Common Facility Centres
  • Project Implementation Agency – State Implementing Agency, CPSU, SPSU etc.

For the Gazette Notification check https://meity.gov.in/esdm/emc2.0

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EMC2.0 Portal: www.emc20.stpi.in

For more information write to: emc@meity.gov.in

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EMC2.0 Portal: www.emc20.stpi.in

For more information write to: emc@meity.gov.in

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Scheme Outcomes

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S. No Mechanism Impact on Disability (%) Remarks

1.

PLI 4% - 6% Financial incentive on large scale production

2.

SPECS 0-1.6% 20% Capex Subsidy annualised on 8% Capital Cost 3. EMC 2.0 1% Logistics, Plug and Play Infrastructure

4.

RoDTEP 0.2% - 0.7% In lieu of MEIS as a Duty-Free Scrips administered by DGFT

5.

Concessional Rate of Income Tax 0.2% - 0.9%

6.

Ease of Doing Business Measures 0.5% Custom Bonded Warehouse, Port Logistics, ECB Reforms Total 5.9% - 10.7%

Impact of New and Existing Schemes

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Thank You